This one day (six hour) programme is designed for startup promoters and owner managers who want to understand how to create financial projections for their business. It would be beneficial for startups or growth oriented businesses launching a new product to the market or targeting new customers in new markets. Please note that a follow up one to one service is available if required – suggested for businesses with defined business models.

Financial projections is the presentation of a financial picture of the future of a business based on certain business model assumptions –  to include level of Sales, Cost of Sales, Expenses, Staff, and Route to Market. Generally covering a period of 3 or 5 years, financial projections include Cashflow, P&L, and Balance Sheets. Prepared by management, the forecast will detail how a proposed financial package will change the future events in the company – they will be critically reviewed by investors and finance providers before such financial packages are agreed.

It is assumed that participants will NOT necessarily have a finance background but will have good working knowledge of the finances of their own business.

Workshop Outline

The programme will provide participants with the necessary skills and knowledge to use an advanced (but understandable) Excel Spreadsheet to create 3 year financial projections for their business: cashflow, P&L, and Balance Sheet.

TimeTopicAllocated Time
9.30 AM1. Welcome & Introductions30 minutes
10.002. Finance section of Business Plan & Business Plan Appendices60 minutes
11.00Break20 minutes
11.203. Case Scenario100 minutes
1.00 PMLunchOne Hour
2.004. Case Scenario Part II100 minutes
3.40Break10 minutes
3.505. Tailoring the Spreadsheet to different models30 minutes
4.206. Conclusions – Q&A10 minutes

Section 1 and 2 will present the One Day programme within context of preparing a business plan and business planning for both startups and microenterprise owner managers.

Section 3 and 4 is a case scenario (for a business called Optimus Consult). Over three hours is allocated to this activity. This is to ensure that sufficient time is available to all attendees to understand both the business and accountancy element of the case scenario and the Excel element of the Template.  Ideally, it won’t take as long as envisaged so that more time can be devoted to Section 5, which addresses how to tailor the Spreadsheet template to other business types.

20 Step Process to create Financial Projections

The central element of the workshop is working through the Case Scenario which presents detailed strategic and financial information on a new business opportunity. The case scenario requires creation of 3 year financial projections based on the information presented. The facilitator will complete the projections on the day based on the collective decisions of the attendees. Participants will be encouraged to follow along on their own laptops in order to become familiar with the template. A 2 page handout detailing 20 steps to complete financial projections is circulated as the ‘Answer’ – the answer is derived from a Template and using a Process allied to Accountancy knowledge.

This programme will offer a practical approach to financial projections, explain accountancy terminology, and address how to create financial projections which include: revenue streams, cost of sales, overheads such as wages, and rent; VAT; capital spending; pre-trading activity; depreciation; loan finance; Grants and equity investment. Some of these issues will not pertain to all the businesses but a basic understanding of accountancy treatment is required by startup promoters.

Please note that the Excel Template is semi-automatic in that once a Revenue Model Sheet is input, information is pulled into the top half of the Cashflow. When the bottom half of the cashflow is completed, figures are automatically copied into correct locations in P&L, and the Balance Sheet which are all in separate Excel sheets. Please note that the Excel file is not locked for editing. The instruction is that formulas should ideally not be changed – unless attendees are familiar with Excel.

Number of Participants

The format will stimulate interaction, discussion amongst peers of experience to date, and questions for the facilitator. The programme would require a minimum of 4 people/ teams and could cater for up to 12 participants. Attendees with accountancy or finance backgrounds are more than welcome – Donncha is a business planner and not an Accountant!

Required Equipment

Laptop with Excel for each participant. Internet not necessarily required.

Tailoring the Spreadsheet to Different Models 

The case scenario is generally representative of growth oriented startups. A follow up one to one service can be offered to assist participants to create financial projections for their business. The following six questions will in most cases be sufficient to tweak a financial model to fit another business:

1. Revenue Stream Items (products or channels) with Prices

2. Confirm VAT rate for each Revenue Stream

3. What is Cost of Sales associated with each Revenue Stream

4. What are likely expenditure line items and monthly costs.

5. What is the payment structure – is it 60 days after Sale? Or some other model?

6. Q. Yes or No. Have you traded to date (earned sales or spent money in business) and if yes, for how many years?

Please contact Donncha for a quote to develop a Group Training workshop. I am happy to respond to tender requests.

Finally, I would recommend reading an old blogpost entitled, ‘How to make your business plan or tender document look professional?‘ It details how to copy Excel projections into your business plan.

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Online Training

Donncha has published an online training programme entitled, ‘Creating Financial Projections for a Local Business’.